'Decline expected': Hefty financial losses as NZR releases 'state of the union' report
New Zealand Rugby has reported a $17 million loss in the 2018 financial year, after its $30m profit the year before, despite recording its second-highest annual revenues of $190m.
Deloitte said in its annual “state of the unions” report, which also tracks the off-field financial performance of the provincial unions, that a decline was “always to be expected” following the British and Irish Lions tour in 2017.
Deloitte said New Zealand Rugby still had a strong financial position to build upon in the upcoming years, with net assets standing at $104m.
New Zealand’s five Super Rugby clubs do not publish their financial results, but Deloitte said “anecdotal evidence” suggested they were facing financial pressure with “decreasing gate attendances being well publicised, as well as being observable from game footage”.
Deloitte said Super Rugby club shareholders, which include NZ Rugby and provincial rugby clubs, “do need to carefully consider how they invest future resources for the benefit of the Super Rugby clubs given they provide a massive opportunity and pathways for professional players into All Black teams”.
Provincial rugby union clubs ran up a solid $1.2m surplus in the 2018 financial year after their knock-out $3.8m profit the previous year, Deloitte said.
Other highlights from the State of the Unions report:
· For the fifth year, the report looked at the financial performance of the Heartland Championship unions. They continued their trend of surpluses, posting a collective surplus of $410,000 for FY18, slightly down from FY17’s collective surplus of $473,000.
· New Zealand Rugby (NZR) reported a net loss for FY18 of $17.3 million, a decrease from their FY17 surplus of $29.9 million. However, their $189.5 million in revenue posted in FY18 was the second largest revenue they have ever reported. These results come after the significant effect that the British and Irish Lions tour had on NZR’s financials in FY17.
· For the Mitre 10 Cup unions, the number of player registrations grew collectively by 1,145 (0.9 percent) to reach total player numbers of 132,895. The greatest increase in player numbers was in the senior grades with registrations increasing by over 2,000, an increase of 10.0 percent from 2017 that has restored playing numbers in this grade to 2012 levels. There was growth in both male (8.7 percent increase to 21,504) and female (28.1 percent increase to 1,832) player registrations in this age group.
· Social media continues to develop as a key channel for unions to engage with their supporters. Combined Facebook followers increased 3.6 percent to 520,604, Twitter followers grew by 4.2 percent and Instagram saw the greatest increase in both actual numbers and percentage terms as the unions’ collective followers grew by 41,165 (38.3 percent) over the year.
· Continuing to increase the focus on diversity and inclusion is important for the unions going forward. It should be a critical focus for any organisation seeking to survive in the 21st century, but particularly for an organisation that canvasses as diverse a range of ages, regions and backgrounds as rugby does. Attracting a more diverse employee, volunteer and player base, particularly in leadership, management or governance roles, will help rugby unions better understand, predict and support an increasingly diverse group of sponsors and fans.
This article was first published on nzherald.co.nz and was republished again with permission.
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Comments on RugbyPass
I've never been convinced that Patty T is a test match all black. Otherwise I probably agree it's the best side available to beat the poms. Caveat that Codie Taylor is yet to be seen and could very likely warrant selection by June. I hope that Razor brings the young loosies, half backs and locks into the training squad and develops/ selects the best
7 Go to commentsYou doing the same thing I disliked about the example of Samisoni Taukei'aho, Nick. He’s great the way he is, you’re trying to do what modern-day coaches frustrate me doing, turning everyone into the perfect athlete. Next thing you’ll be telling me you’ll bench him until he’s hit that arbitrary marker, and can’t overtake the current guy who’s doing all his workons. He’s a young Kieran Read, through and through, plays wide and has threat, mainly (and evident in your clips) through his two hand carry and speed. Just let him work on that, or whatever he wants, and determine his own future. Play God and you risk the players going sideways, like Read did, instead of being a Toutai Kefu. I mean I was in the same camp for a while, wanting our tight five to have the size, and carry ability, as the teams they were getting beat by. Now I’m starting to believe those teams just have better skilled and practiced individuals, bigger by upwards of 5kg sometimes, sure, but more influentially they have those intrinsic skills of trust and awareness. Basically our guys just didn’t know wtf they were doing. Don’t think I’m trying to prove a point here but hasn’t Caleb Clarke been in much better form this year, or does he just ‘look’ better now that he’s not always trying to use his size?
43 Go to commentsThe pack lacks a little in height for the line out and I wouldn’t be completely convinced by some of the combinations till we see it in action.
7 Go to commentsThe side is good but lacks experience. International playing bona fides udually trumps super rugby form for good reason. And incumbents are usually stuck with. Codie Taylor should start or come off the bench. B Barrett will start at fullback. Blackadder has not earned the position, Finau has. TJs experience and competitiveness earns him a starting role, Christie or Ratima off the bench
7 Go to commentsPretty good side. Scott Barrett should be the captain. Ethan Blackadder a great choice at blindside. He is going to go from strength to strength having made a couple of starts for the Crusaders. Scott Robertson rates him highly. Perenara could start a no 9.
7 Go to commentsI question and with respect. Was enough done over the last few years to bring through new blood knowing the Whitelocks and co couldn’t last forever. There should have been more done to future proof the team. New squad new coach, he and they weren’t set up well. IMO
6 Go to commentsJacobsen will definitely be in the 23
7 Go to commentsLots of discussion points, Ben, but two glaring follies IMO: 1. Blackadder at 6. Has done nothing so far this season to justify his selection. Did you see him going backwards in contact at the weekend? Simply has not got the physical presence at 6: we need a Scott Barrett or a Finau (or wildcard Ah Kuoi), beasts who are big enough to play lock, like Frizzell. If Barret played at 6, Paddy could be joined at lock by Vai’i or one of the young giants we need to promote, like Darry or Lord (if he ever gets on the field). Blackadder best left to join the queue for 7. 2. Not even a mention for Christie? Ratima gets caught at crucial times at the back of the ruck when he hesitates on the pass. The only way he starts would be if Christie and TJ are injured.
7 Go to commentsWhat a dagg in more ways than one
6 Go to commentsRegroup come back next year but sack some of the coaching team and don't be like the ABs last minute sacking. If Crusaders don't do well ABs don't do well.
5 Go to commentsProctor Definitely inform again this year had a hell of a season last year and this year is looking even better. Still mixed feelings about Ioane tho.
4 Go to commentsDagg is still trying to get enough headlines to make himself relevant enough to get a job. The Crusaders went back to square one at all levels. Shelve this season and nail the next one.
6 Go to commentsHe was in such great form. Sad for him but only a short term injury and it will be great to see him back for the finals.
1 Go to commentsAfter their 5/0 start, I had the Crusaders to finish Top 4 only…they lost the plot in Perth but will reload and back themselves vs 4th placed Rebels…
5 Go to commentsBoth nations missed a great opportunity to book a game that would have had a lot of interest from around the world. I understand these games can’t be organised in 5 minutes but they should have found a way to make it happen. I don’t think Wales are ducking anyone but it’s a bad look haha.
3 Go to commentsIt will be fascinating to see the effect that Jo Yapp has. If they can compete with Canada and give BFs a run for their money that will be progress
1 Go to commentsFollowing his dream and putting in the work. Go well young fella!
3 Go to commentsPerhaps filling Twickenham is one of Mitchell’s KPIs. I doubt whether both September matches will be at Twickenham on consecutive weekends. I would take the BF one to a large provincial stadium so as not to give them the advantage and experience of playing at Twickenham before a large crowd prior to the RWC.
3 Go to commentsvery unfortunate for Kitshoff, but big opportunity potentially for Nché to prove he is genuinely the best loosehead in the world, rather than just a specialist finisher. Presuming that if Kitshoff is out, it will also give Steenekamp a chance to come into the 23? Or are others likely to be ahead of him?
1 Go to commentsA long held question in popular culture asks if art imitates life or does the latter influence the former? Over this 6 nations I can ask the same question of the media influencing the thoughts of its audience or vice versa. Nobody wants to see cricket scores in rugby, as a spectacle it is not sustainable. With so many articles about England’s procession and lack of competition it feeds the epicaricacy of many looking for an opportunity to pounce. England are not the first team to dominate nor does it happen only in rugby, think Federer, Nadal, Red Bull or Mercedes, Manchester Utd, Australia in tests and World Cups. Instead of celebrating the achievements why find reasons to falsify it pointing towards larger playing pool, professional for a longer period or mitigate with the lack of growth in other nations. Can we not enjoy it while it is here and know that it won’t last for ever, others coveting what England have will soon take the crown, ask the aforementioned?
6 Go to comments